Student loans are both a blessing and a curse. You get to go to school, party like there is no tomorrow and graduate with a bachelor’s degree in finance or law. But then, once you earning (if you’re even working) you get to watch all that hard earned cash get redirected to pay off your student loan debt. Not exactly a pretty sight, in fact an eye sore.
One of the greatest ways to prevent your money from going down the drain is to be prepared. We are not talking about preparing yourself as soon as you are out of college, but more like a gradual exercise that will make it easier for you to pay out your education debts unless you were lucky enough to be granted a scholarship in one of the many scholarship lottery drawings that are getting more and more popular these days.
Prepare a Budget
Start with assessing your money and how much you will need each month to pay for your possible debt plus interest. You have to look ahead so that you will know how much you can set aside and how much you can splurge on other things. If you are working part-time while studying, you can try cutting your salary in half and see if it will be enough to pay for your debt after college as it accumulates over time. Do not allow debts that take you over the limit. Always think of ways to lessen spending and increase earning to pay off loans quickly.
Prepare to Eliminate High Rate Loans
Once you know how much you can allot to pay for your loan, start prioritizing it. If you have other high rate loans such as a car loan or you borrowed money from relatives, opt to allot more money for these loans so that you can eliminate them as quickly as possible. Since student loans have low rates, you can provide a monthly staple just for that to slowly reduce debt burdens in the future.
Prepare to Save Those Bonuses and Extra Cash
You are a student; you have a family and an extra handful of different jobs to tide you over college. Of course, once in a while you get lucky and your relative or parents give you extra allowance or cash to splurge on something you really like. Or you get tipped extra from a satisfied customer. As hard as it may seem, you have to learn to set aside that money to pay for your debt. Think of it this way: You might want to have that really cool car right now but once your debt free after college and you work hard, you can have it all in different colors!
Student loans are inevitable in the lives of most people. It is either you learn to strategically deal with it ahead or you let it leech off most of your hard earned money. So be prepared and pay off your loans with ease. After all, you benefited from it in the first place.